I recently read a white paper from Event Marketer entitled "Portfolio Consolidation" and within this paper was a section on cost containment pertaining to 3rd party suppliers. They used a phrase I have been looking to find or "coin" myself for years. Many people (including myself) use boring descriptions like "Supplier Programs", "Vendor Management", "Preferred Suppliers" ....anyone else yawning yet? I thought so. Yes, I know "Procurement" while essential, important and powerful can be, well, a bit dry. However, I'm one of the odd ones and I'm very passionate about it. I prefer to think of a good procurement department or Director of Procurement more as the "Dr Phil" of supplier relationships. Personally I believe procurements core tenant is to create and maintain an environment in which relationships between clients, production company and suppliers can thrive. So what is that phrase that's got me so excited?
Supplier "Ecosystem"! See what I mean? That one word describes everything I believe good procurement should be. A healthy supplier ecosystem will keep everything and everyone in balance allowing for great communication, improved supplier performance, significant cost reductions and a shared sense of purpose. Procurement isn't about beating suppliers over the head, it is about creating an environment in which the correct supplier can be matched with the right opportunity to maximize results for everyone. It is about being able to have open, honest conversation which allows each participant to learn and grow. Condensed into a single word and you would call it: Competition!
A supplier "ecosystem" is like any other in that it will seek a natural and healthy balance. I believe Darwinism is another relevant description...the strong shall survive. Procurements job is to analyze the environment to understand what conditions must exist in order for a healthy "ecosystem" to exist so that true, honest competition can take place. The supplier environment on which we depend is as complex as the natural environment. This is to say there are main components (strategic supplier relationships) which must exist, but there are also niche "micro ecosystems" which help support and maintain the overall health of the entire "ecosystem". Again, procurements job is to discover these smaller micro organisms which help support the overall health of the entire "ecosystem" and ensure they are protected and maintained.
So understand that in the world of event marketing proper procurement helps protect and maintain the healthy "ecosystem" we and our clients absolutely must have to prosper and grow.
Comments (0)